Amazon Tax Law in your State?
I live in the State of Georgia in the USA - and apparently, the powers that be have passed an "Amazon Tax" law that would require Amazon (and other online retailers) to collect sales tax on sales that start with my Georgia-based affiliate link and lead to a sale by a Georgia consumer.
This whole Nexus Tax stuff is confusing... and a mess... and the State of Georgia's "solution" is horribly flawed.
I just posted a long and detailed post on my blog about this situation explaining what this Nexus tax is, who really cares about it, who wins, who loses, and more over on my blog.
If you're interested, you can read it here:
http://www.potpiegirl.com/2012/08/affiliate-nexus-tax-law-coming-to-georgia/
Thanks!
Jennifer
~PotPieGirl
Recent Comments
14
If it is the same event that is taking place in California, it will begin on 09-15-2012. Amazon at one point cut off all affiliates in CA, but later make a deal with the state attorney general to restore them and collect the sales tax for them. Amazon will open a fulfillment center warehouse in San Bernardino now they agreed to collect taxes, it will create 1000 jobs.
Sounds to me like you have to run for office to beat this law back into submission.
NY has come to an uneasy alliance with Amazon. We can still do business here but they are taxing Internet sales from Amazon to NY residents.
When they enacted a voluntary tax on purchased items over the internet what made them believe that a) people would keep track and b) why would anyone pay additional tax to the state with the highest tax burden anyway. ( Actually we're not the highest anymore, but still heavily taxed)
I think it's stupid the way it's done. Illinois passed the law a long time ago. So, Illinois affiliates can benefit. However, affiliates based in other states can, and do, sell in Illinois, and benefit.
This is one of those things that work if either everybody does them or nobody does them.
Hey Jennifer. I live in NC and cant qualify as an Amazon associate because of sales tax issues. I'm feelin' ya.
Hey all - thanks for your comments! I've been talking to some politicians at my local level about this and it appears that there is something going on (ie, things happening that might cause this to NOT be a reality for Georgia affiliates). Naturally, I'll believe it once I see it.
Either way, it is *supposed* to be "law" now, but Amazon isn't doing anything. If they DO decide to terminate me due to my states Nexus Laws, I'm not overly concerned about it. I have options - and yes, one of them is a simple incorporation in another state if need be.
Most of all I am simply AMAZED at how this whole thing went down. The Nexus (Amazon Tax) part of the bill was tacked on to the end of a Tax Bill that has many parts (some good, some bad). It was passed only 30 HOURS after it was first introduced. It's weakly written and most likely won't stand up in court due to the way they wrote it (and passed it).
Just another 'hurry up and wait' scenario...lol!
Perhaps a business opportunity here for all your fellow Georgians AMZ affiliates. You could be the business liaison that would allow them to still be an amazon affiliate while still operating and living within Georgia. New opportunities derive when you least expect it and even amidst what appear on the surface to be negative events.
Hi Jennifer.
Here in the UK, we have Google only paying tax of $10m on $600m by funnelling their money to Bermuda (via Ireland) whilst Amazon enjoy a 20% margin over competitors here because they have sufficient volume to route UK deliveries via the Channel Islands so avoiding Value Added Tax (VAT).
Vodafone has yet again somehow managed to avoid last year's UK tax bill, which was in excess of $1bn and one of our biggest retailers pays barely any tax at all as the chairman's wife owns the company and she lives in Monaco. It seems practically every government is satisfied with chasing tiny minnows whilst choosing to ignore the great big sharks.
I was wondering if it would be possible to use a factoring service outside of Georgia or if someone was generating sufficient earnings would it be worth considering incorporating themselves in another State?
Best.
Rich.
Well you know that you are big when they starting a tax just for you! the question i would ponder is, Is this just a test for a stream on ongoing new taxes. Sorry to Jen that you have another IM obstacle going your way
Nothing really surprises me when it comes to something that would seem so logical. No ability to earn money from a program like Amazon associates, no longer a large revenue stream for the state to tax, less money being put into the economy, and even better...a lot of the larger affiliates will move to a state in which they can still promote Amazon.
Sorry to hear they are coming down on Georgia and I hope they decide to think through their decision making in a sensible way.
See more comments
I wish I would have seen this earlier, but I had to comment
anyway . I live in Missouri and used to be an Amazon Associate. Never made a lot, but I had a couple blogs and it was nice to get a little surprise money now and then.
Now I am back working online and was so disappointed to find that while I was 'away' working 9-5, the great grand pooh-bahs have taken away the Amazon opportunity for our state.
It's sad.
Patsy